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Murrr4er [49]
3 years ago
5

Tom Yuppy, a wealthy investor, exchanged a plot of land that originally cost him $60,720 for 1,380 shares of $10 par common stoc

k issued to him by Leuig Corp. On the same date, Leuig Corp. issued an additional 2,760 shares of stock to Yuppy for $44 per share. Required a. What was the value of the land at the date of the stock issue?
Business
1 answer:
Tom [10]3 years ago
6 0

Answer:

$13,800

Explanation:

Given that,

Cost of land = $60,720

Number of shares issued = 1,380

Par value of common stock = $10

The market value of the land is determined by multiplying the number of shares issued with the par value of common stock.

Value of the land at the date of the stock issue:

= Number of shares issued × Par value of common stock

= 1,380 shares × $10

= $13,800

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Hope this helps.
4 0
3 years ago
In an attempt to increase sales, JCPenney has increased its advertising and sales promotions in its current markets, hoping to a
mylen [45]

Answer: Market penetration

Explanation:

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Hence, market penetration is the growth strategy, which JC Penney is applying.

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3 years ago
Why is organic manure used in soil? Explain briefly.​
Sliva [168]

Explanation:

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4 0
3 years ago
Read 2 more answers
Your opinion is that Boeing has an expected rate of return of 0.08. It has a beta of 0.92. The risk-free rate is 0.04 and the ma
stiks02 [169]

Answer:

As the required rate of return of the security (9.52%) is more than the expected rate of return (8%), the security or stock is overpriced.

Option b is the correct answer.

Explanation:

A security is underpriced when the required rate of return of the security is less than the expected rate of return and vice versa.

Using the CAPM, we can calculate the required rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.  

The formula for required rate of return under CAPM is,

r = rRF + Beta * (rM - rRF)

Where,

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r = 0.04 + 0.92 * (0.1 - 0.04)

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As the required rate of return of the security (9.52%) is more than the expected rate of return (8%), the security or stock is overpriced.

3 0
3 years ago
The Model for Improvement begins with three questions designed to clarify the following concepts: (A) Plan, do, act (B) Mission,
HACTEHA [7]

Answer:

The correct answer is C.

Explanation:

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Have a nice day!

3 0
3 years ago
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